Ralph Lauren Corporation, a US-based leading firm in the design, marketing, and distribution of luxury lifestyle products, has reported an increase in revenue by 1 per cent to $1.5 billion for the first quarter of fiscal 2025 (Q1 FY25). The revenue rose by 3 per cent in constant currency. Foreign currency fluctuations negatively impacted revenue growth by approximately 170 basis points.
Ralph Lauren Corporation reported a 1 per cent revenue increase to $1.5 billion in Q1 FY25, with a 3 per cent rise in constant currency.
Gross profit was $1.1 billion with a 70.5 per cent margin.
Net income was $169 million, or $2.61 per share.
North America revenue fell 4 per cent, while Europe and Asia saw growth of 6 per cent and 4 per cent, respectively.
The gross profit for the first quarter was $1.1 billion, with a gross margin of 70.5 per cent. Operating expenses totalled $857 million on a reported basis. On an adjusted basis, operating expenses were $850 million, reflecting a 2 per cent increase from the previous year. Operating income for the quarter was $209 million, resulting in an operating margin of 13.8 per cent on a reported basis, the company said in a press release.
Net income for Q1 FY25 was $169 million, or $2.61 per diluted share on a reported basis. On an adjusted basis, net income was $175 million, or $2.70 per diluted share. This compares to net income of $132 million, or $1.96 per diluted share on a reported basis, and net income of $158 million, or $2.34 per diluted share on an adjusted basis, for the first quarter of fiscal 2024.
Revenue performance for the company’s reportable segments varied. North America revenue in the first quarter decreased by 4 per cent to $608 million. In retail, comparable store sales in North America increased by 1 per cent, with a 3 per cent increase in brick-and-mortar stores more than offsetting a 4 per cent decrease in digital commerce.
Europe revenue in the first quarter increased by 6 per cent to $479 million on a reported basis and 7 per cent in constant currency. In retail, comparable store sales in Europe increased by 8 per cent, ahead of expectations, with a 7 per cent increase in brick-and-mortar stores and a 14 per cent increase in digital commerce. Europe wholesale revenue increased by 5 per cent compared to the prior year on both a reported and constant currency basis.
Asia revenue in the first quarter increased by 4 per cent to $391 million on a reported basis and 9 per cent in constant currency, slightly ahead of expectations. Comparable store sales in Asia increased by 9 per cent, with a 7 per cent increase in brick-and-mortar stores and a 21 per cent increase in digital commerce.
“Our brand has always been about inspiring a better life and celebrating the moments that bring us together,” said Ralph Lauren, executive chairman and chief creative officer. “From our intimate runway show at our New York studio this spring to our elegant Salone del Mobile presentation in Milan and this summer’s Olympics, we are inviting people around the world to step into their dreams through authentic, timeless style.”
Fibre2Fashion News Desk (DP)